Mumbai: PayPoint India, a last-mile distribution network of Financial Services, is driving a unique initiative that offers a complimentary Personal Accident Insurance cover for migrant workers transferring money to their families at native place. The insurance cover provides financial protection of up to Rs 50,000 to the insured person against uncertainties such as accidental death or partial, temporary, permanent and total disability due to an accident.
At zero premium cost, the cover is available exclusively for PayPoint India customers, especially those coming from India’s vast under-served rural areas as well as the unskilled migrant laborers. To be eligible for the benefit, the user has to simply remit money from a nearby PayPoint store or PayPointz wallet. Regardless of the transferred amount, the cover automatically renews – once a new money transfer is initiated – in the subsequent month.
Unskilled workers the most vulnerable to accidents: The insurance benefit is designed majorly for laborers staying and earning in industrial zones and cities or working in factories, transport, loading and unloading, etc. According to government statistics, these unskilled workers are the most likely victims to fall for accidents during their working hours.
Commenting on the peerless initiative aimed at filling a major void in the migrant lives, Ketan Doshi, Managing Director of PayPoint India, said, “Given India is traditionally an underinsured and one of the most acutely vulnerable countries, we aim to expand the blanket of financial security for the ones who need it the most through this initiative. By integrating with a transaction, we want them to be aware and proud of their commitment to their own families.”
Ensuring social and financial security during the Covid-19 pandemic: As per various NGO reports, there were at least 1,461 accidents throughout the nationwide lockdown – from March 25 to May 31 – at least 750 people were killed, including 198 migrant workers. During such unprecedented times, when the need for social and financial security has come to the fore, such benefits can add valuable support to migrants. PayPoint expects to cover 1 million customers through its network of 48,000 plus digitally enabled retail stores by next year.
“The pandemic has created tougher times for migrant laborers. The initiative has been introduced in line with our vision to reach out to the proverbial bottom of the pyramid population, prioritizing the self-employed migrants’ financial resilience and embedding a sense of security in them”, added Mr. Doshi.
PayPoint catering small ticket size insurance: While insurance agencies usually shy away from small ticket size insurance policy because of low commission rates, PayPoint successfully manages to sell such policies in urban and rural areas, thereby increasing the insurance penetration. This is done by ensuring compensation from other services such as remittance, utility bill payment, DTH & mobile recharges, air and bus ticket booking, etc.